Crude inventories fell 7.2 million barrels in the week ending July 21, far exceeding the 2.6 million barrel forecast.
On Monday, Saudi Arabia said it would limit oil exports to 6.6 million barrels per day (bpd) in August, down almost 1 million bpd from a year earlier.
US crude stocks fell last week as refineries hiked output and imports dropped, while gasoline stocks decreased and distillate inventories fell, the Energy Information Administration said. US crude for September delivery recently traded up 65 cents, or 1.36%, to $48.54 a barrel on the New York Mercantile Exchange.
Oil prices firmed on Wednesday to hold near eight-week highs hit in the previous session, on expectations of a drawdown in US stocks and as a rise in shale oil production shows signs of slowing.
LOOP LLC (LOOP) - operator of of the largest privately-owned crude oil storage and transportation logistics facility in the U.S.
Furthermore, Indonesia's Energy Minister has that the country will join OPEC if the oil cartel does not force it to curb its production. Last week, OPEC formally agreed to extend the current deal to cut oil production by 1.8 million barrels per day until March 2018.
WTI oil prices are forecast at $48.95 per barrel in 2017 and $49.58 per barrel in 2018, according to the EIA.
Donald Morton, senior vice president at Herbert J. Sims & Co., who runs an energy-trading desk, said prices of different grades of oil around the world are moving closer together - another sign of an increasingly tight market.
This marks a 5 percent increase over the same period in 2016. USA gross ethanol exports averaged 96,000 b/d, a 40 percent higher figure than was seen during the same period the year before.
Earlier, oil prices gained support following Saudi Arabia's announcement to restrict crude exports to 6.6 million barrels per day (bpd) in August, a one million bpd decrease from the earlier year.
But analysts said rallying oil prices could encourage more production, particularly from the United States.
Motorola brings out the new Moto 360 camera with Z2 Force
Similar to Apple's portrait mode, the dual-lends setup has allowed Moto to implement a depth-of-field effect on the Moto Z2 Force. The Moto Z2 Force now packs dual-lens camera on the rear with 12MP image sensors for each and with an aperture of f2.0.